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Real Estate week 5

# Real Estate week 5 - Gr a de book De ta il G radingSummary...

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8/12/13 Gradebook Detail https://frameset.next.ecollege.com/(NEXT(41c927c49b))/Main/AllMode/FramesetHybrid/GeneralFramesetView.ed 2/5 3. Question : (TCO 7) A building owner charges net rent of \$20 in the first year, \$21 in the second year, and \$22 in the third year. Using a 11 percent discount rate, what is the effective rent over the three years? Student Answer: \$20.00 \$21.00 \$20.93 \$22.00 Instructor Explanation: Chapter 9, Pages 275­276 Effective rent = 20/1.11 + 21 /1.112 + 22/1.113 = 18.02 + 17.04 + 16.09 = \$51.15; then, solve for PYMT.. PV = ­51.15; i = 11%; n = 3, FV = 0 Points Received: 2 of 2 Comments: 4. Question : (TCO 7) A building owner charges net rent of \$20 in the first year, \$21 in the second year, and \$22 in the third year, but is providing six months of free rent in the first year as a concession. Using a 8 percent discount rate, what is the effective rent over the three years?
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